GET IN BUYING AND FLIPPING REAL ESTATE

4 weeks ago

Source: Crystal Wilburn - Wellspring Mortgge and Investments, LLC

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July 17, 2017| by: wilburncm

Buying and flipping real estate is a common way to make money. If you purchase a home at a good price, make
some aesthetically-appealing renovations, and sell the house at a higher price than you paid, you can easily make
quite
a lot of money. However, house flipping
is by no means an easy "get rich quick"
plan. It takes a lot of work, a lot of
investments, and even with a great
house you may have a hard time
selling the finished product simply due
to the fluctuating housing market.

You can look for cheap real estate in
your local newspaper, through online
listings, or by searching out delinquent
mortgages online. The key to flipping
real estate is finding a decent,
repairable house at a low enough price
to be worth your time, effort, and
money.

Common sources of cheap real estate
include HUD foreclosures, regular
foreclosure sales, and short sales. You
can also try searching for death notices
and divorce settlements, as these tend
to precede quick housing sales.

Before you purchase any property, it's important to know your budget and be aware of the anticipated costs. To do
this, you'll need to evaluate the property to assess how extensive the repairs will be. Then work backwards to
compare the after-repair value (ARV) of that property with the estimated costs and repairs you'll need to put in.

In addition to all the other costs involved in buying, rehabbing, and selling a home, you'll have to also consider the
financing costs. Will you need to take out a loan to complete the purchase? If so, you'll have to shop around to find
the best interest rate on a home loan. If you find a good loan offer or have secured enough capital to make the
purchase, and if everything else checks out and fits within your budget, then you're ready to make an offer to that
property's real estate agent. You can easily get Fix and Flip from market.

In addition to the costs of equipment, labor, and, of course, the property itself, there are numerous other costs to
factor in as you decide on a property. The costs associated with owning a property that you haven't sold are
generally referred to as carrying costs. These may include property taxes, condo or association fees, insurance, and
utilities like electric, gas, and water services. You'll also have to pay a realtor for his or her services, which can
average around five to ten percent of the sale price of that property.

Remember that the longer you hold a piece of property without successfully flipping it, the more your carrying costs
will add up. Not all homes sell right away. Even an attractive home in a hot area may be on the market for a while, which can add
up costs very quickly. You may want to have a backup plan, including renting the property or living there yourself, just
in case the sale doesn't go through. Some real estate experts advise only going through with a purchase if you are
willing/able to hold onto the home and live in it or rent it out for at least five years, in case selling it doesn't go as
planned.

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